§ 62-19 Business Procedures – Documents, Transactions, and Closing Procedures.
RCNY § 62-19
(a)Interested Parties.
(1)A Broker must not request, accept or permit a party to provide a Power of Attorney or any other legal document that has not been completed and signed.
(2)If a Broker requests a party to sign a document and return it to the Broker, the Broker must give the party a duplicate copy for the party's own records. If any party attends a closing and is presented with a document for signature, the Broker must furnish that party with a copy of the signed document at that closing.
(3)All other documents prepared by the Broker for an interested party must be delivered to that party within 10 business days after the completion of a closing or other transaction unless otherwise provided in these Rules.
(4)The Broker must request and retain written acknowledgement that the party received the papers. The Broker must be able to provide proof of compliance with this paragraph upon request of any party or the TLC. 35 RCNY § 62-19(a)(1) - (4)Fine: $400 - $2,000 and/or suspensionAppearance REQUIRED (5) A Broker must give written notice to all sellers and buyers involved in a Medallion transfer of their right to be represented by an attorney or an accountant of their own choosing. 35 RCNY § 62-19(a)(5)Fine: $500 - $1,000Appearance REQUIRED (b) Principals.
(ii)The fee to be paid to the Broker or, for purposes of net listing agreements pursuant to 35 RCNY § 62-18, the amount to be paid to the seller.
(iii)All services provided by the Broker.
(iv)The Broker's duty to act in the interest of his or her client.
(v)The Broker's duty to disclose any financial interest of the Broker in the transaction beyond the fee specified in the agreement.
(vi)The Broker's duty to account for all money and property of his or her client that is entrusted to the Broker.
(vii)The purchasers' and sellers' right to be represented by an Attorney.
(viii)Agreements for the transfer of an interest in a Medallion must provide the following additional terms: (A) The Broker's duty to disclose any facts known to the Broker which materially impacts the value of the Medallion. (B) If the Broker is representing the seller, the Broker's duty to disclose all offers to purchase the Medallion.
(5)The following documents must be attached to each agreement: (i) A copy of the Broker's annual disclosure, signed by the Broker's client, in a form and manner prescribed by the Commission.
(6)In transactions including the financing or refinancing of a Medallion: (i) A Broker must provide his or her client with all documents provided by the lender for such client.
(8)Brokers may not charge or request any additional payment or fee in excess of the dollar amount or percentage set forth in the Brokerage Agreement.
(9)Within 10 business days following any transaction, a Broker must forward to his or her client all monies due to such client.
(i)Exception. The Broker may maintain the monies due to such client in an Escrow account to permit recovery against outstanding obligations owed by the client. 35 RCNY § 62-19(d)(7) - (9) Fine: $2,500 - $10,000 and/or suspension or revocation; restitution may be ordered.Appearance REQUIRED (Amended City Record 2/12/2020, eff. 3/13/2020)
